How Mega Ecommerce Platforms (like Amazon) are Shaping the Future of Shipping Around the World

Royal Mail shipping services – partnership with Amazon UK.

Imagine a group of postal representatives, casually eating lunch amid a sea of T-shirts and jeans in Google’s cafeteria. That’s just one of the scenarios that took place during a recent visit from the IPC (International Post Corporation) to the Silicon Valley.

Endicia had the good opportunity to host the Belgium-based group for a day and show them around town (hence the visit to Google). But more importantly, we were given a chance to share insights and discuss strategies regarding an increasingly important topic in postal circles: how ecommerce will impact the shipping industry around the world.

One of the major topics of discussion was Amazon. The ecommerce giant has presented itself as a significant influencer on ecommerce shipping in the United States, experimenting with innovative services such as package delivery by cab this holiday season. But Amazon’s competitive edge is also being felt by shipping carriers around the globe, such as the Royal Mail in the United Kingdom.

Last month, the Royal Mail announced that Amazon’s new local delivery service in the UK posed a severe threat to its parcel delivery business – by as much as 2 percent in the short term. The announcement of this “threat” led to an 8.3 percent drop in the Royal Mail’s stock shares.

Shortly thereafter, the Royal Mail announced its partnership with Amazon to provide consumers with more solutions for quick delivery. Their new shipping service (called “click and collect”) allows people to order a product on Amazon and select one of more than 10,000 Royal Mail locations to pick it up.

When asked about the partnership with Amazon in a recent interview, Nick Landon, managing director of Royal Mail Parcels, said: “Royal Mail is developing services and investing in IT solutions to meet the changing demands of online retailers and their customers.”

There is no doubt that this partnership was made with one thought in mind: to adapt and provide services that consumers have come to expect.

The Royal Mail is only one of the many postal services around the world that will be implementing changes to translate its networks to meet the ecommerce shipping evolution.

For more insight, check out our ecommerce tips and trends page.

 

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